World Bank Report: Pakistan Accounts for 48% of Extremely Poor People in the Region

ISLAMABAD: The World Bank, in its latest economic report, has revealed that 48 percent of the extremely poor people in the Middle East, North Africa, Afghanistan and Pakistan (MENA-P) region live in Pakistan, with poverty in the country increasing significantly in recent years.
According to the World Bank report, titled “Middle East, North Africa, Afghanistan and Pakistan Economic Update: From Divide to Opportunity — AI, Jobs and Growth,” people living on less than $3 per day in Pakistan account for nearly half of the region’s extremely poor population.
Key Findings
The report states that:
Pakistan accounts for 48 percent of the region’s population living below the $3-per-day poverty line.
Afghanistan, Syria and Yemen collectively account for another 47 percent, meaning nearly 95 percent of the region’s extremely poor population is concentrated in these four countries.
In 2024, 14.3 percent of the MENA-P region’s population was living on less than $3 per day, compared with the global average of 10.4 percent.
At the $4.20-per-day poverty line, 26.9 percent of the region’s population was living in poverty, compared with a global rate of 18.9 percent.
Poverty Rises in Pakistan
The World Bank reported that between 2018-19 and 2024-25, poverty in Pakistan increased by 6.4 percentage points at the $3-per-day poverty line.
At the $4.20-per-day poverty line, poverty increased by 3.2 percentage points during the same period.
The report attributed the deterioration to several factors, including:
The COVID-19 pandemic
The devastating floods of 2022
High inflation and currency depreciation
Prolonged economic adjustment, which weakened real household incomes and employment opportunities
MENA-P Faces a Unique Poverty Challenge
The World Bank noted that the MENA-P region is the only region in the world where poverty remains above pre-pandemic levels and continues to rise.
According to the report, Pakistan’s worsening poverty situation has made a significant contribution to the overall increase in poverty across the region.
Economic Outlook
The World Bank projects:
GDP growth: 3.7 percent in FY2025-26
Real per-capita GDP growth: 2.1 percent
Inflation: estimated at 7.1 percent in 2026, potentially rising to 8.2 percent in 2027
Budget deficit: projected at 3.5 percent
The report also noted that following the escalation of conflict in the Middle East, petrol and diesel prices in Pakistan increased by more than 40 percent, placing additional pressure on low-income households.
Food Security Concerns
The World Bank has also identified Pakistan among countries facing food-security risks. According to the report, low-income households spend approximately 35 to 50 percent of their total income on food, making them particularly vulnerable to increases in food prices.
The report further warned that the El Niño phenomenon is forecast to intensify toward the end of 2026, potentially affecting monsoon conditions in Pakistan and putting further upward pressure on food prices.
Key Indicators
Indicator
Details
Share of region’s extremely poor living in Pakistan
48%
Afghanistan, Syria and Yemen combined
47%
increase in poverty at $3/day line
6.4 percentage points
Increase at $4.20/day line
3.2 percentage points
Increase in petrol and diesel prices
More than 40%